Mendon-Upton Regional School District

Mendon-Upton Regional School District

Operating Budget RequestFiscal Year 2010

March 16, 2009 Mendon Upton Regional School District

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Agenda Educational Funding Overview & Implications 2010 Budget Summary

Cost Drivers Funding Sources Proposed Reductions

District Comparisons Cost Control Measures Reduced Budget Impact Next Steps / Summary / Q & A


3March 16, 2009Mendon Upton Regional

School District 3

MA General Law Chapter 70School Funds and State Aid for Public Schools

Step 1: Foundation Budget

The foundation budget is the minimum spending amount recommended per child under Massachusetts law.

The foundation budget is computed using a district’s student enrollment and demographics, which include grade levels, low income status and English language proficiency.

Each district has its own foundation budget, which is typically small; districts spend on average 118% of their calculated foundation budget.



School District 4


Step 2: Town’s Ability to Pay

A target “minimum local contribution” is established based on a town's wealth (Mendon and Upton are calculated separately).

Two measures of wealth are used: Aggregate property values Aggregate personal income levels

FY10 foundation budget calculations use 2008 property values and 2006 income levels.



School District 5


Step 3: Proportion of State vs. Local Aid

The target local share and target aid share for an individual town will vary in proportion to a town's wealth (as determined in step 2).

The state’s average spending targets are as follows:

State Aid: 41 percent (target aid share) Local Aid: 59 percent (target local share)

Mendon’s and Upton’s target local share is now ~58-59%, matching the state average.



School District 6


Step 4: Transition to Target Local Share

Mendon and Upton have historically had a low target local share (~40%), with the state providing a high aid share (~60%).

That changed with the addition of personal income to the formula in 2006.

Transition factors are used so that the shift to target levels will occur gradually over a period of several years.



School District 7

Implications of Chapter 70 Changes

The State is gradually decreasing the amount of aid it provides to our District, and the Chapter 70 formula calls for local town contributions to slowly increase until target levels (~59%) are reached.

Local revenues remain constrained by Proposition 2½ and limited town growth.

For FY10, the governor is proposing to level fund Chapter 70. As a result, the state is not providing its legally required minimum contribution to our District.


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710 MENDON UPTON

Comparison to FY09

FY09 FY10 Change Pct ChgEnrollment 2,658 2,649 -9 -0.34%Foundation budget 21,996,366 22,993,709 997,343 4.53%Required district contribution 9,449,432 10,147,020 697,588 7.38%Chapter 70 aid 12,546,934 12,546,934 0 0.00%Required net school spending 21,996,366 22,693,954 697,588 3.17%

C70 target aid share of foundation 39.64% 41.10%C70 actual pct of foundation 57.04% 54.57%NSS as pct of foundation 100.00% 98.70%

Massachusetts Department of Elementary and Secondary EducationFY10 Chapter 70, Preliminary

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

foundation budget required contribution chapter 70 aid

FY06 FY07 FY08 FY09 FY10

fy10 c70 is level-funded at the fy09 amount

District is not receiving 100% of foundation

Total of two towns' min. local contribution increase



School District 9

Regional Transportation Expenses

Unlike non-regionalized districts, regional school districts in MA receive state reimbursement for transportation.

Despite a cost increase of $48,600 for our District, FY10 state reimbursement is expected to be ~$112K less than FY09.

After state reimbursement, the remaining cost of transportation is split between the two towns based on student population (per the terms of the regional agreement).


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Budget Summary Mendon-Upton Regional Schools - FY09

Instruction47%

Other School Services

1% Special Education

22%

Fixed Charges14%Administration

2%

Transportation4%

Maintenance and Utilities

10%


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Special Education BudgetPersonnel & Non-Personnel

Expenses

FY07 FY08 FY09Salaries $2,805,765 $3,298,638

$3,467,687

Out of District Tuitions $787,353 $790,450 $1,250,000

Non-Salary Expenses $1,221,955 $1,117,256 $1,322,327

(i.e. district programs, transportation, supplies, consultants)

TOTAL $4,815,073 $5,206,344 $6,040,014

FY09 actual SPED costs are expected to exceed budget by ~$800K; FY10 budget is anticipated to be ~$6.84M (24% of total budget)



School District 12

FY10 Level Service Budget Drivers

Special Education $805,201 Personnel $757,529 Health Insurance (projected) $290,113 Transportation $ 48,600 Worcester County Retirement $

39,164

Total Level Service Budget: $1,940,607 (+7.05%)



School District 13

Proposed FY10 Budget (+3.88%)

FY09: $27,511,832 FY10: $28,579,558 Increase: $ 1,067,726 (+3.88%)

Funding needed: $187K – State/Stimulus $697K – Towns

$190K – School District



School District 14

Funding Sources - State Aid

Chapter 70 $12,546,934 $12,546,934 0

Transportation $820,972 $708,200 - 112,772

Total State Aid $13,367,906 $13,255,134 - 112,772

FY09 Budget

FY10 Budget

Change

NOTES:The Governor’s House Bill 1 level funds Chapter 70 for school districts statewide.

The District is expecting $299,755 from the Federal Stimulus Package to supplement this Chapter 70 aid and bring the state up to its legal foundation level.



School District 15

Funding Sources Total Contribution - Upton

Minimum Req’d $5,183,271 $5,507,876 + $324,605

Transportation $454,234 $637,537 + $183,303

Fixed Assets $61,115 $61,271 + $156Operational

Additional Prior Overrides

$1,005,659 $822,200 - $183,459

TOTAL $6,704,278 $7,028,883 + $324,605

FY09 Budget

FY10 Budget

Increase



School District 16

Funding Sources Total Contribution - Mendon

Minimum Req’d $4,266,161 $4,639,144 + $372,983

Transportation $372,999 $520,568 + $147,569

Fixed Assets $50,185 $50,029 - $156Operational

Additional Prior Overrides

$825,808 $671,351 - $154,457

TOTAL $5,515,154 $5,881,093 + $365,939

FY09 Budget

FY10 Budget

Increase


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Funding Sources - School District Contributions/Reimbursements

FY09 Budget

FY10 Budget

Increase

Vision, SPED. Tuition, Interest

$280,000 $350,000 $ 70,000

Net Choice $600,950 $615,102 $ 14,152

Net Charter - $56,456 - $75,409 - $18,953

E & D Appropriation $200,000 $200,000 $ 0

Revolving Funds $250,000 $250,000 $ 0

Circuit Breaker $600,000 $700,000 $100,000

Medicaid Reimbursement

$ 50,000 $ 75,000 $ 25,000

TOTAL $1,924,494 $2,114,693 $190,199



School District 18

Percentage of Total Budget From All Sources - FY10

Upton 24.59%

Mendon 20.58%

State Aid & Stimulus 47.43%

District 7.40%



School District 19

FY10 Proposed Budget Reductions from Level Service

Personnel (10 positions):

Consolidation of SPED program (1) $56,000 Paraprofessionals (4) $95,000 Administrative Assistants (2)

$51,575 Custodian (1) – attrition $50,272 Food Service (2) $26,663

Personnel Total: $279,510



School District 20

FY10 Proposed Budget Reductions from Level Service

Expenses:

Retirement Offsets (6) $179,000 Utilities / Fuel Savings $150,000 General School Supplies $ 46,979 Maintenance Account $

46,000 Athletics (supplies & freshmen sports) $ 34,000 Department Supplies (Nipmuc) $ 31,469 Stipends (7) $ 18,536 Late Bus $ 3,600

Expenses Total: $509,584


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District Adjustment to Level Service Budget

Personnel: $279,510 Expenses: $509,584 New Revenue: $ 48,000

(School Choice – 8 @ Nipmuc)

Total: $837,094

March 16, 2009Mendon Upton Regional

School District 21



School District 22March 16, 2009Mendon Upton Regional

School District 22

FY07 Spending Rankings for all Categories

(1=highest, 329=lowest) Out of 329 districts reporting, our district ranks . . . Administration – 320th

Instructional Leadership – 298th Classroom and Specialist Teachers – 268th Other Teaching Services – 300th Professional Development – 168th Instructional Materials – 67th Guidance Counseling/Testing – 244th Pupil Services – 193rd Operations/Maintenance – 245th Insurance/Retirement – 284th Out-of District PPE’s – 155th Information source: MA DESE Website



School District 23March 16, 2009Mendon Upton Regional

School District 23

Per Pupil Expenditures9th of 10 comparable communities

(based on income, population and student enrollment)

State provided expenditures of comparable communities

DEDHAM 13,157 CANTON 11,105HOLLISTON 10,856 ASHLAND 10,599GROTON DUNSTABLE 10,284 FOXBOROUGH

9,956 HANOVER 9,611 MEDFIELD 9,472 MEDWAY 9,341 MENDON-UPTON

9,194NORTH READING 9,049

MA State Average: $11,789

Information source: MA DESE Website



School District 24

Mendon-Upton Spends Less than Most Districts

(FY07 MURSD ranked 306 of 331 Districts)

<8% of school

districts spend less

<8% of school

districts spend less

>92% of

school districts spend more

>92% of

school districts spend more

Mendon-Upton$9194 per student

per year

Mendon-Upton$9194 per student

per year



School District 25

FY07 Average Teacher Salaries

(comparable communities – MURSD ranked last)



School District 26

Student to Instructional Personnel Ratio (not class size)

In FY07, MURSD ranked last of 10 comparable communities

Dedham13.0

Hanover13.0

Holliston 13.4

Foxborough 14.5 Ashland

14.9Medway

14.9 Medfield

15.1 Canton

15.4 Groton-Dunstable 16.0North Reading

16.4Mendon-Upton

19.0Information source: MA DESE Website



School District 27

Federal Economic Stimulus Assistance

The American Recovery and Reinvestment Act (ARRA) of 2009 will provide funds to the school district through:

• Existing education grants to states• General funds to support state fiscal stabilization

Funds made available under existing federal grants can only be used by eligible districts for specified purposes.

The District expects to receive $299,755 of Federal stimulus assistance to supplement the level Chapter 70 funding.



School District 28

District Cost Control Measures

Acquired a grant from National Grid to retrofit the schools with new lighting and to reduce energy costs. Pursuing additional opportunities with local power company.

Negotiating with the bargaining unions across the district to

find creative solutions to reduce impact of payroll increases. Negotiated greater health insurance cost sharing with

employees and opened discussions with the towns to reduce health insurance costs.

Conducting transportation audit and investigating other cost sharing opportunities with other districts.

Increasing our choice population at the high school.

Under a grant from MUEF, providing grant writing instruction to staff in order to bring additional funds to the district.



School District 29

What if requested funding isn’t received?

Mendon Finance Committee has suggested a funding increase of $89,010 over FY09 levels.

The corresponding Upton FY10 contribution would decrease from FY09 by $14,548.

Overall District budget: +$451,645 (+1.64%)


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Impact of Reduced (+1.64%) Budget

~38 additional District employees would be impacted through a combination of cuts and reduced work hours ~17 District employee positions would be

cut (11 professionals and 6 para-professionals)

Remaining ~21 employees would have reduced work hours


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It’s Not All Bad News... Curriculum Guides (PreK-12) assembled K-5 Math program implemented (Investigations) MCAS: Top 10% in state’s 10th grade test Standards Based Elementary Report Card Alert Now Communication System IPASS Student Information System Grade alignment transition going smoothly Met AYP (Adequate Yearly Progress) in all schools, all

areas 2008 four year Graduation Rate – 95.3% (24th best in

state’s public schools) Updated District Web Page Energy Savings Initiative (National Grid)



School District 32

Where Do We Go From Here? Monitor status of stimulus funds – counting on

~$300K Monitor towns’ contributions Prioritize list of additional cuts (if needed)

NOTE: Additional cuts WILL impact the administration and teachers

Continue to look for options to reduce costs through: Collaboration Regionalization Grants

Reminders: Stimulus funds are short term State will continue to push towns to 59% local

contribution level Translation: It’s not going to get any better in the future!



School District 33

Summary

School District is asking the towns to meet minimum local contribution increase (3.88% budget increase)

If 3.88% budget is not achieved, additional cuts will be needed

Reminder: last year the District cut ~10 positions, half of them classroom teachers

Budget will change between today and town meetings

School Committee will monitor funding sources between today and both town meetings to determine a final budget for ratification by voters; more communications will follow



School District 34

FY10 Budget

Questions?

Thank you for your support forMendon-Upton Regional Schools!


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Backup Info


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Per Pupil Expenditures(comparison communities)


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’07 Comparison Community Data

TOWN ENROLLMENT

PER PUPIL EXPENDITURE % SPED

AVERAGE TEACHER SALARY

ASHLAND 2,504 10,599 20 52,772 CANTON 3,011 11,105 17 64,495 DEDHAM 2,725 13,157 23 60,991 FOXBOROUGH 2,953 9,956 19 56,109 HANOVER 2,623 9,611 17 55,605 HOLLISTON 2,709 10,856 23 57,856 MEDFIELD 2,919 9,472 16 60,604 MEDWAY 2,709 9,341 19 59,394 NORTH READING 2,713 9,049 19 56,344 GROTON DUNSTABLE 2,757 10,284 15 54,528 MENDON UPTON 2,649 9,194 22 50,138

Documents

Mendon-Upton Regional School District